How does this work?It is a technical subject, but becoming so important.
- When anyone clicks on a web page that has advertising space that is configured for programmatic advertising, the publisher of the page puts up an ad impression for auction in an ad marketplace.
- The ad marketplace then runs an auction among advertisers interested in displaying an ad to that specific customer that just click on the page.
- There may be many advertisers competing in this auction, and whichever one ultimately is willing to bid the most wins the auction and then their ad is displayed to the customer when the page loads.
- Because the process is automated and the maximum price each advertiser is willing to bid for the impression has already been programmed in, the auction can be completed within the milliseconds it takes for the page to load.
Some interesting links:
- We have been working with Media Donuts on Programmatic Marketing since 2013 with very good success.
- Interesting Guide for beginners from the Digital Marketing Institute.
- Adweek explains how to leverage programmatic in your brand marketing plan.
- Marketing Interactive look at Asia as a case study, showing that more than 2/3rd of display is programmatic.